An inter vivos trust is characterized by which of the following?

An inter vivos trust refers to a trust that is created and becomes effective during the lifetime of the grantor. The term "inter vivos" translates to "between the living," indicating that the trust is established while the grantor is still alive, which allows the grantor to manage, modify, or revoke the trust terms as needed. This characteristic is fundamental to understanding inter vivos trusts.

It's also worth noting that while inter vivos trusts can be either revocable or irrevocable, this does not limit the defining feature that they are established during the grantor's lifetime. Thus, the correct understanding of an inter vivos trust hinges on its timing—specifically its creation during the grantor’s life, enabling them to have direct control over the trust assets and the ability to change the trust provisions. This flexibility in management is what differentiates it from a testamentary trust, which is made through a will and comes into effect only after the grantor's death.